Managing a downsizing process

Abstract

This article identifies five gaps between research and practice in the area of employment downsizing. Each area includes psychological research findings that should promote better management practices. Two organizations that successfully bridged the gap between research and practice are presented as examples of how to manage strategic and interpersonal processes effectively when there is pressure to downsize employees. One organization did downsize 8,000 employees as a last resort, while the other took creative steps to avoid any employment downsizing. The article concludes with suggestions for enhancing the effectiveness of downsizing efforts even further, and for evaluating the actions taken.©2004 Wiley Periodicals, Inc.